Car Insurance Scams Cost Us All
Car insurance Fraud is far from a victimless crime. There are the obvious victims: those people injured or even killed by a \”staged accident.\” In a \”staged accident,\” the perpetrator deliberately smashes into the victim’s car, in hopes of cashing in on that person’s car insurance. It is easy to see how this could lead to serious injuries or fatalities to innocent people.
But there are also substantial financial costs associated with insurance fraud, and these have widespread consequences. In the state of New York, Senator Charles Schumer’s office found that car insurance scams cost each driver in New York about $200 a year, for a total of 1 billion dollars. Car insurance quote numbers skyrocket because someone has to pay for all of these claims.
How do we know if we are victims of fraud? Knowledge and skepticism are our best defense. Know all the common con artist schemes, and be sure to collect all information from the other party involved in the accident.
The \”Scoop and Squat\” is easy to spot and commonly used. Two scammers in separate cars box in a victim and force a rear-end accident. They do this by driving closely in front and directly to the side of the innocent driver. The car in front slams on its brakes, leaving the victim not enough room to stop, and no exit to the other lane. The victim is powerless to stop the accident.
One of the most common and dangerous staged accidents is the \”T-Bone.\” This is when the scammer smashes his or her car into the side of a car passing innocently through a green light or stop sign. Accomplices then falsely claim the victim ran a red light or stop sign. Because so few cars come equipped with side airbags, this type of fraud causes many serious injuries, and even deaths, to the victims.
Even accidents that are not staged often carry potential for fraud at the repair shop. Dishonest repair shops can bill insurance companies at higher rates, or even for unneeded repairs. They can falsely deem a car destroyed, and turn around and sell it for parts. Some repair shops may even re-christen the \”totaled\” car with new paperwork and numbers, and put it back in operation.
How do we protect ourselves from car insurance cons? Defensive driving is the first and best defense. If you are in an accident, be observant and aware of the other drivers, passengers, and witnesses. Fully documenting the accident is vital: Take pictures and collect information from everyone involved. This helps authorities catch car insurance cons, and gives you full photographic detail of the damage done to your car.
Protecting yourself means finding a trustworthy repair shop. Your insurance company can help with this. Ask for their recommendation. Once you have a reputable garage, make sure to ask for an itemized listing of the repairs they did. If something seems suspicious, ask questions. Getting a second opinion from another repair shop is always a good idea.
Car insurance scams can make all of us feel angry and helpless. But with a little street smarts and good documentation, you can protect yourself against many insurance fraud schemes and keep your own record clean while helping to combat the skyrocketing costs of auto insurance.
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